Silverjet secures $25m investment

Silverjet has seen several rivals go out of business.

Loss-making business class airline Silverjet has found a Middle East investor to inject at least $25m (�13m) into the firm to help it keep flying.

The UK carrier, which flies from London's Luton Airport to New York and Dubai, is struggling with high fuel prices and tight credit conditions.

Alternative funding would be needed if the deal fell through, Silverjet said.

It is now the only all-business transatlantic airline operating after rivals EOS and Maxjet ceased flying.

'Strong position'

The unnamed investor is set to invest $25m initially, taking a 28% stake in the group.

Under the plan the investor would pump a further $75m into the carrier's future development.

However a full takeover of the airline is still possible.

Two weeks ago it revealed it was in talks over a possible sale.

"This investment places Silverjet in a strong position to further develop our brand and proposition," said Silverjet's founder and chief executive, Lawrence Hunt.

"It is particularly encouraging to have secured this agreement in a challenging environment for all airlines."

Silverjet started services in January 2007 and operates three planes.

It achieved its highest monthly sales in March, and Mr Hunt said it was moving towards being profitable as soon as possible

Fuel problems

Maxjet and EOS both struggled to fill enough seats on their planes.

This along with fuel costs saw both file for Chapter 11 bankruptcy protection after being unable to secure enough funding to stay in business.

On Wednesday, Menzies Corporate Restructuring were appointed as joint administrators in the UK for Eos.

The company said it wanted to hear from anyone interested in acquiring the business or its assets.

Another airline, Oasis, which offered cheap flights from London to Hong Kong, ended all its services last month and applied for liquidation.

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